Gold and silver prices experienced a dramatic increase on Thursday morning, with silver surpassing the $120 mark and gold approaching an impressive $5,600. This surge comes amid rising tensions between the United States and Iran, coupled with a weakening dollar. As of 9:30 a.m. EST, gold was priced at approximately $5,535.10—a rise of over 4.3% from the previous day—though slightly down from an earlier peak of $5,586.20. Silver, on the other hand, reached $121.10, marking an increase of nearly 7% and closely nearing its record high of $121.79 earlier in the same session.
The gains in gold and silver have been part of a broader upward trend observed since 2025, but this week marked a particularly noteworthy moment. Gold saw a staggering increase of $220 on Wednesday alone, constituting its largest single-day dollar gain on record and the highest percentage increase since March 2020, when the onset of the Covid-19 pandemic triggered similar price escalations.
Market analysts attribute this significant surge to a combination of geopolitical tensions involving the United States and Iran, a notably weak dollar, and speculation regarding additional interest rate cuts by the Federal Reserve. The dollar itself plummeted to a four-year low earlier this week, coinciding with President Donald Trump’s announcement of a “massive armada” being dispatched toward Iran, urging the country to engage in negotiations over nuclear weapons.
Experts from the finance sector have echoed sentiments about gold and silver being considered “safe-haven assets” amid heightened geopolitical risks. Hao Hong, chief investment officer at Lotus Asset Management, emphasized that these precious metals serve as reliable options during times of uncertainty.
However, not all analysts are convinced by the movements in the precious metals market. Some have raised concerns about the market itself being “broken,” pointing to erratic price fluctuations that do not align with traditional supply and demand metrics. Maximilian Tomei, CEO of Galena Asset Management, noted that while the metals are experiencing significant price growth, such increases cannot be solely attributed to market demand. Other analysts, including Nicky Shiels from MKS PAMP, share similar concerns, stating that the current volatility is unprecedented in the metals market.
Looking ahead, market watchers are closely observing whether the upward trend for these metals will persist throughout the year. Marko Kolanovic, a former chief market analyst at JPMorgan, has warned that silver could drop by as much as 50% within a year, citing its susceptibility to substantial price swings. Meanwhile, Deutsche Bank has posited that gold could potentially breach the $6,000 mark later this year, particularly in light of the dollar’s continued weakness.
Further factors contributing to the surge in gold and silver prices include persistent international conflicts, such as the U.S. capture of Venezuelan leader Nicolás Maduro and President Trump’s contentious political maneuvers, which have raised concerns about the Federal Reserve’s independence. Suki Cooper from Standard Chartered Plc remarked that worries over the Fed are prompting more retail investors to allocate funds toward gold.
In addition, silver’s appeal is bolstered by its crucial role in technological sectors, specifically in manufacturing electric vehicles and powering AI data centers. As market dynamics continue to shift, the future trajectory of gold and silver remains at the forefront of financial discussions.
